The Deputy Prime Minister today unveiled a multi-million pound package for urban renaissance - 'The Northern Way'.

Announcing a comprehensive package of measures to create jobs, sustainable communities, growth in the economy across the North, and to reduce disparities between the North and South.

Government Response: Office of the Deputy Prime Minster

John Prescott, deputy prime minster said: "The government's £22 billion communities plan is designed to create sustainable and prosperous communities, North and South.

"There is new confidence and energy in many of our Northern towns and cities. After years of decline, people are moving back.

"But they face a different set of challenges from the south east of England especially the economy - therefore we need different solutions to different problems.

"That's why today I am announcing the allocation £155 million to breathe life back into the housing market in some areas of Merseyside and Newcastle/Gateshead which have been blighted for far too long by low demand.

"The funding will bring improvements to run-down and obsolete housing, and create conditions for communities to thrive. And it will attract an estimated £732 million of public-private finance to support wider regeneration of these areas.

"As part of the step change to create sustainable communities North and South the government has today also announced the local authority winners of an £89 million fund for new and improved urban parks and green spaces in 27 pilot areas, to ensure the quality of our environment.”

"But we need a long-term vision, as well as investment. So I look forward to working with the regional development agencies and the regional planning bodies on a plan to exploit existing infrastructure - airports, motorways and rail lines. And we will continue to work with them to identify ways of increasing economic growth in the regions – raising skills, enterprise, investment, innovation and competition, and getting people back into jobs.

"Making the most of the North's potential demands a new mindset - a transregional view - so that the sum of investment and regeneration is greater than the parts.

"By raising the economic performance of the North to that of the English average, the three Northern regions would be around £30 billion per year better off, that's around £2,000 per person. Catching-up with the average would also generate an extra 200,000 jobs."

Forum Response: English Partnerships

Margaret Ford,English Partnerships’ chairman, said: "The Sustainable Communities Plan has been hugely important in helping to bring a focus and direction to the regeneration of many of our towns and cities and delivering very real benefits for people across the country.

"English Partnerships enthusiastically endorses the government´s commitment to sustainability. One year on from the start of the Plan, the achievements have been significant with many projects well underway and communities being transformed into places where people want to live and work.

"This ambitious package is a real step forward in terms of energy and commitment and English Partnerships will play a full part in realising this ambition. The vision is deliverable and we are more than ready to do it."